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Game Theory & Strategy

Imagine that you own a pharmacy in your area. One of your competitors launches a We will not be undersold campaign, which promises consumers 150 % of any difference between its prices and the advertised prices of other pharmacies. In 300 to 400 words address the following:

-Evaluate the social issues in your community as well as the economic culture that is influencing this type of pricing competition. 

-Develop and describe a microeconomic model that is responsive to the service demands of your market. 

-Based on your conclusions, how would you react to this situation, and with what business strategy would you approach this? 

-How might you apply game theory to the creation of your strategy?

Must use at least two scholarly sources formatted according to APA style.

 

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